J

Provision Effective 2004 2005 2006 2007 2008 2009 2010 201

Provisions Relating to Repeal of Exclusion for Extraterritorial Income 

1. Repeal of exclusion for extraterritorial income [1] ................ toa DOE 3,710 4,780 5,093 5,312 5,508 5,727 5,993 6,252. Deduction relating to income attributable to United 

States production activities .................................................. tyea DOE -339 -835 -1,609 -3,510 -4,340 -4,947 -6,094 -6,30

Total of Provisions Relating to Repeal of Exclusion for Extraterritorial Income ................................................................................. 3,371 3,945 3,484 1,802 1,168 780 -101 -4General Transition for Repeal of Exclusion for toa DOE & Extraterritorial Income ...................................................... before 2007 -3,105 -3,234 -2,682 -765 --- --- --- -International Tax Provisions 

A. International Tax Reform 

1. Extend the foreign tax credit carryforward from 5 

years to 20 years .................................................................. [2] --- -266 -343 -412 -577 -767 -941 -1,08

2. Apply look-through rules for dividends from 

noncontrolled section 902 corporations ............................... tyba 12/31/02 -585 -77 -51 -23 -6 -1 [3] [

3. Repeal the 90% limitation on the use of foreign tax 

credits against the AMT ....................................................... tyba 12/31/04 --- -236 -355 -338 -334 -333 -334 -33

4. Recharacterize overall domestic loss .................................. lf tyba 12/31/06 --- --- --- -57 -680 -713 -756 -795. Interest expense allocation rules ......................................... tyba 12/31/09 --- --- --- --- --- --- -963 -2,586. Determination of foreign personal holding company 

income with respect to transactions in commodities ............ teia 12/31/04 --- -4 -10 -10 -10 -10 -11 -1

B. International Tax Simplification 

1. Repeal of rules applicable to foreign personal 

holding companies and foreign investment companies, personal holding company rules as they apply to foreign corporations, and include in subpart F personal service contract income, as defined under the foreign personal holding company rules .............. [4] --- -25 -65 -73 -81 -91 -102 -11

2. Expand the subpart F de minimis rule to the lesser 

of 5% of gross income or $5 million ..................................... [4] --- -15 -143 -157 -173 -190 -209 -23

3. Attribution of stock ownership through partnerships 

in determining section 902 and 960 credits ......................... tyba DOE [3] -1 -3 -3 -3 -3 -3 -

4. Limit application of uniform capitalization rules in the 

case of foreign persons ........................................................ tyba 12/31/04 --- -125 -278 -79 -27 -8 -12 -1

5. Eliminate secondary withholding tax with respect to 

dividends paid by certain foreign corporations .................... pma 12/31/04 --- -2 -3 -3 -3 -3 -3 -

[Millions of Dollars] 

Fiscal Years 2004 - 2013 

ESTIMATED REVENUE EFFECTS OF THE CHAIRMAN'S MARK OF S. 1637, 

THE "JUMPSTART OUR BUSINESS STRENGTH ('JOBS') ACT," 

SCHEDULED FOR MARKUP BY THE COMMITTEE ON FINANCE ON OCTOBER 1, 2003 
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Provision Effective 2004 2005 2006 2007 2008 2009 2010 201

6. Eliminate 30% tax on certain U.S.-source capital 

gains of nonresident individuals ........................................... tyba 12/31/03 --- -2 -2 -2 -3 -3 -3 -

Total of International Tax Provisions .................................................................. -585 -753 -1,253 -1,157 -1,897 -2,122 -3,337 -5,17Interaction........................................................................ --- 13 14 16 17 19 21 245 62Additional Provisions 

A. Provisions Designed to Curtail Tax Shelters 

1. Clarification of the economic substance doctrine 

and related penalty provisions ............................................. teia DOE 1,031 1,242 1,163 1,049 1,086 1,200 1,335 1,51

2. Provisions relating to reportable transactions and various dates 

tax shelters ........................................................................... after DOE [5] 92 115 119 120 124 131 139 15

3. Modification to the substantial understatement 

penalty .................................................................................. tyba DOE --- 4 11 19 23 26 30 3

4. Impose a civil penalty (of up to $5,000) on failure to 

report interest in foreign financial accounts ......................... DOE [6] [6] [6] [6] [6] [6] [6] [

5. Actions to enjoin conduct with respect to tax 

shelters ................................................................................. DOE 

6. Understatement of taxpayer's liability by income tax 

return preparer ..................................................................... dpa DOE 

7. Frivolous tax submissions .................................................... [7] 3 3 3 3 3 3 3 8. Regulation of individuals practicing before the 

Department of Treasury ....................................................... ata DOE 

9. Extend statute of limitations for undisclosed listed 

transactions .......................................................................... [8] --- --- 1 1 1 1 1 

10. Deny deduction for interest paid to the IRS on 

underpayments involving certain tax motivated transactions .......................................................................... tyba DOE --- --- 1 1 3 4 4 

11. Authorize additional $300 million per year to the IRS 

to combat abusive tax avoidance transactions [9] ............... DOE Total of Provisions Designed to Curtail Tax Shelters ............................................. 1,126 1,364 1,298 1,193 1,240 1,365 1,512 1,70

B. Other Corporate Governance Provisions 

1. Affirmation of consolidated return regulation 

authority ................................................................................ [10] 

2. Chief executive officer required to sign declaration 

as part of corporate income tax return ................................. rfa DOE 

3. Denial of deduction for certain fines, penalties, and 

other amounts ...................................................................... apoia 4/27/03 101 10 10 10 10 10 10 1

4. Denial of deduction for punitive damages ............................ dpoia DOE 38 29 30 31 32 33 34 35. Criminal tax fraud package .................................................. oco/a DOE --- --- [6] [6] [6] [6] [6] [

Total of Other Corporate Governance Provisions ................................................ 139 39 40 41 42 43 44 4

C. Enron-Related Tax Shelter Provisions 

1. Limitation on transfer or importation of built-in 

losses ................................................................................... ta 2/13/03 128 123 136 149 164 180 198 21

2. No reduction of basis under section 734 in stock 

held by partnership in corporate partner .............................. da 2/13/03 9 13 20 28 36 44 51 5

3. Repeal of special rules for FASITs ...................................... after 2/13/03 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Negligible Revenue Effect - - 

 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - No Revenue Effect - - - -  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - No Revenue Effect - - - - 
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Provision Effective 2004 2005 2006 2007 2008 2009 2010 201

4. Expanded disallowance of deduction for interest 

on convertible debt ............................................................... diia 2/13/03 6 88 90 94 96 98 101 10

5. Expanded authority to disallow tax benefits under 

section 269 ........................................................................... aa 2/13/03 10 9 9 10 10 11 11 1

6. Modification of CFC-PFIC coordination rules ...................... [11] 23 15 8 4 5 6 8 1

Total of Enron-Related Tax Shelter Provisions ................................................... 176 248 263 285 311 339 369 39

D. Tax Treatment of Inversion Transactions ............................ [12] 172 137 140 168 202 242 290 34

E. Impose Mark-to-Market on Individuals who 

Expatriate ............................................................................. [13] 101 84 80 74 71 67 61 5

F. Other Revenue Provisions 

1. Effectively connected income to include certain

foreign-source income .......................................................... tyba DOE 3 5 7 8 9 10 10 1

2. Recapture of overall foreign losses on sale of

controlled foreign corporation stock...................................... DOE [6] 3 7 8 9 9 9 1

3. Disallowance of partnership loss transfers .......................... ctada DOE 15 39 57 70 79 84 86 84. Treatment of stripped bonds to apply to stripped 

interests in bond and preferred stock funds ......................... padoa DOE 2 13 11 8 5 3 [6] [

5. Minimum holding period for foreign tax credit on 

withholding tax on income other than dividends .................. apoamt30da DOE [6] 3 3 3 3 4 4 

6. Modify treatment of transfers to creditors in divisive 

reorganizations ..................................................................... to/a DOE [6] 8 9 10 10 10 11 1

7. Extend present-law intangibles amortization 

provisions to acquisitions of sports franchises ..................... aoa DOE 13 61 94 68 36 23 21 1

8. Clarification of rules for payment of estimated tax for 

certain deemed asset sales ................................................. toa DOE 51 37 10 3 3 3 3 

9. Extension of IRS user fees (through 9/30/13) [9] ................. rma DOE 33 34 35 36 38 39 41 4

10. Double certain penalties, fines, and interest on 

underpayments related to certain offshore financial arrangements ....................................................................... oyo/a DOE 2 1 1 [14] [14] [14] [14] [1

11. Add vaccines against Hepatitis A to the list of 

taxable vaccines [15] ............................................................ [16] 6 9 9 9 9 9 9 

12. Exclusion of like-kind exchange property from

nonrecognition treatment on the sale or exchange ofa principal residence............................................................. sopra DOE [6] 11 13 15 17 19 21 2

13. Authorize IRS to enter into installment agreements 

that provide for partial payment ............................................ iaeio/a DOE 40 14 5 [6] [6] [6] [6] [

14. Lease term to include certain service contracts ................... leia DOE 14 26 41 57 74 92 110 12

Total of Other Revenue Provisions .............................................................. 179 264 302 295 292 305 325 35

Total of Additional Provisions .............................................................................. 1,893 2,136 2,123 2,056 2,158 2,361 2,601 2,90

 NET TOTAL ............................................................................................................ 1,587 2,108 1,688 1,953 1,448 1,040 -592 -1,69

Joint Committee on Taxation -------------------------------------- NOTE: Details may not add to totals due to rounding. [Legend and Footnotes for JCX-84-03 appear on the following page] 
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Legend and Footnotes for JCX-84-03: Legend for "Effective" column: 

aa = acquisitions after dpa = documents prepared after aoa = acquisitions occurring after dpoia = damages paid or incurred after 

apoamt30da = amounts paid or accrued more than 30 days after iaeio/a = installment agreements entered into on or after 

apoia = amounts paid or incurred after lf = losses for 

ata = actions taken after oco/a = offenses committed on or after 

ctada = contributions, transfers, and distributions after oyo/a = open years on or after 

da = distributions after padoa = purchases and dispositions occurring after diia = debt instrument issued after pma = payments made after 

DOE = date of enactment rfa = returns filed after 

[1] Includes estimate for binding contract relief. [2] Effective for excess foreign taxes that may be carried forward to any taxable year beginning after December 31, 2004. [3] Loss of less than $1 million. [4] Effective for taxable years of foreign corporations beginning after December 31, 2004, and taxable years of U.S. persons owning stock of such corporations with or wi

corporations' taxable years end. 

[5] Effective dates for provisions relating to reportable transactions and tax shelters: the penalty for failure to disclose reportable transactions is effective for returns and 

of which is after the date of enactment; the modification to the accuracy-related penalty for listed or reportable transactions is effective for taxable years ending after th

the tax shelter exception to confidentiality privileges is effective for communications made on or after the date of enactment; the material advisor and investor list disc

applies to transactions with respect to which material aid, assistance or advice is provided after the date of enactment; the failure to register tax shelter penalty applie

for which is after the date of enactment; the investor list penalty applies to requests made after the date of enactment; and the penalty on promoters of tax shelters is 

after the date of enactment. 

[6] Gain of less than $1 million. [7] Effective for submissions made and issues raised after the first list is prescribed under section 6702(c). 

[8] Effective for taxable years with respect to which the period for assessing deficiencies did not expire before October 1, 2003. [9] Estimate provided by the Congressional Budget Office. 

[10] Effective for all taxable years, whether beginning before, with, or after the date of enactment. 

[11] Effective for taxable years of controlled foreign corporations beginning after February 13, 2003, and to taxable years of U.S. shareholders in which or with which such 

of controlled corporations end. 

[12] Effective for certain transactions completed after March 20, 2002, and would also affect certain taxpayers who completed transactions before March 21, 2002. 

[13] Generally effective for U.S. citizens who expatriate or long-term residents who terminate their residency on or after February 5, 2003. [14] Gain of less than $500,000. [15] Estimate contains outlay effects that will be provided by the Congressional Budget Office. 

]16] Effective for vaccines sold beginning on the first day of the first month beginning more than four weeks after the date of enactment.